Supreme Court Turns Down California LCFS Case

Cindy Zimmerman

supreme-courtIn the flurry of decisions by the Supreme Court released the morning, justices declined to review California’s low-carbon fuel standard (LCFS) decision.

A federal trial judge ruled against the LCFS in 2011 but the Ninth U.S. Circuit Court of Appeals reversed that ruling last year and denied rehearing the case in January.

The Renewable Fuels Association (RFA) and Growth Energy issued a joint statement regarding the decision.

“We are extremely disappointed that the Supreme Court has declined to review the Ninth Circuit’s decision, despite the broad support for the petition – including 21 states. We will continue our efforts to protect the American biofuel industry and the national interest and will continue to ensure that all consumers have access to low-priced, American-made biofuels.”

The ethanol industry was joined in challenging the California law by the American Fuel & Petrochemical Manufacturers (AFPM). “The Supreme Court’s decision not to review this case is disappointing and leaves in place a state regulation that discriminates against fuels and other products produced outside of California,” said AFPM General Counsel Richard Moskowitz. “California’s efforts to dictate how fuel is produced outside of its borders ignores Constitutional safeguards that have long protected against one state controlling the conduct of private parties beyond their borders.”

Ethanol, Ethanol News, Growth Energy, Low Carbon Fuel Standard, RFA

Geothermal Bill Makes Progress in California

Joanna Schroeder

The California Assembly’s Natural Resources Committee approved the proposed geothermal legislation S.B. 1139 with a 6-2 vote. Earlier in the week, the Utilities and Commerce Committee also passed the bill, by 8-5. The Senate approved it in May. This bill, should enacted, will strengthen the geothermal industry’s position in the state as it moves to lower carbon energy solutions.

California_Geothermal-3“The Geothermal Energy Association supports existing geothermal power facilities in California and efforts to expand geothermal power production in the state,” said Karl Gawell, GEA’s executive director said upon passage of the bill from the two committees.

The next step is for the bill to be heard in August by the Assembly Appropriations Committee. If the bill is enacted, retail sellers would need to increased their geothermal-powered electricity use by a combined total of 500 MW by 2024.

GEA has noted that California has great potential for geothermal power development throughout the state. In other California geothermal news, a concurrent initiative by the Imperial Irrigation District in Imperial County would use geothermal energy in a plan to restore the Salton Sea habitat and shorelines.

Geothermal, Legislation, Renewable Energy

Solar Power Helping to Power the U.S. Economy

Joanna Schroeder

Made in the USAWith the U.S. 4th of July holiday celebration just a few days away, IBISWorld has announced the top five industries that have helped to “re-power” the U.S. economy since the recession. The industries are characterized by strong employment growth and increasing revenue, with both trends expected to continue through 2019.

The top five industries include:

  1. Car and Automobile Manufacturing
  2. Solar Power
  3. Apartment and Condominium construction
  4. Craft Beer
  5. 3D Printing and Rapid Prototype Services

In more detail, IBISWorld has estimated solar growth from 2010-2014 at 70.0 percent per year on average with estimated average revenue growth from 2015-2019 at 7.6 percent per year. IBIS reports that while solar energy has been around for some time, the industry has struggled to gain traction until recently. Industry growth has been due in part to favorable Renewable Portfolio Standard (RPS) legislation, Implemented in more than 30 states. RPS legislation requires local utilities to generate a percentage of their total energy portfolio from renewable sources, thereby increasing demand for industry services. State mandates, coupled with consumers’ growing propensity to patronize environmentally friendly industries, have led to explosive revenue growth for operators over the past five years.

IBIS forecasts that over the next five years to 2019, the solar power industry is expected to continue growing. Continued government assistance via tax incentives and other regulations will help the industry remain competitive with other energy sources. Moreover, increased electricity consumption is expected to spur industry operators to meet growing demand by providing cleaner energy. Finally, the price of solar-generated energy is expected to continue falling to be either at or below parity with the traditional retail rate of grid power. As a result of these trends, IBISWorld expects revenue for the Solar Power industry to increase at an annualized rate of 7.6% over the five years to 2019.

Renewable Energy, Solar

Iowa Congressman Visits Biodiesel Producers

Cindy Zimmerman

braleyCongressman Bruce Braley (D-IA) visited the REG biodiesel plant in Mason City, Iowa on Friday to meet with members of the state’s biodiesel industry concerned about the proposed lowering of volume requirements under the Renewable Fuel Standard (RFS).

The current RFS proposal would set biodiesel volumes at 1.28 billion gallons, a sharp cut from last year’s actual production of nearly 1.8 billion gallons. “We’re grateful to Rep. Braley for his support on renewable fuels, and we’re asking for his help specifically in increasing the proposed biodiesel volume to at least 1.7 billion gallons,” said Grant Kimberley, executive director of the Iowa Biodiesel Board.

braley-biodiesel2A recent national survey of producers conducted by the National Biodiesel Board found that more than half have idled a plant this year and 78 percent have reduced production from last year. Nearly two-thirds have already laid off employees or anticipate doing so. “Iowa is the leading biodiesel state, which generates jobs and economic advancement,” Kimberly said. “The future of these promising businesses is threatened.”

Braley, who is running for the U.S. Senate seat being vacated by Tom Harkin promised that he will “continue to reach out with strong voice and talk about importance of biofuels for Iowa and nation.”

Biodiesel, Government, REG, RFS

Industry Highlights Flaws in CBO Report

Joanna Schroeder

In an update to a story posted last week regarding the new CBO report, “Renewable Fuel Standard: Issues for 2014 and Beyond,” more renewable energy industry representatives are speaking out regarding what they say are flaws in the report.

Tom Buis, CEO of Growth Energy said of the report, “This report looks at unrealistic scenarios and completely ignores the very goals of the Renewable Fuel Standard (RFS), which are to decrease our nation’s dangerous dependence on foreign oil, create jobs and spur economic growth and investment, and improve our environment, all while offering consumers a choice and savings at the pump. The CBO report simply shrugs off these critical policy goals contained in the RFS by noting that, ‘CBO did not account for that effect in this analysis.’

CBO 2014 RFS reportBuis also pointed out the ethanol is currently trading a dollar less than gasoline on the Chicago Board of Trade, which the CBO fails to acknowledge. The report also fails to consider, said Buis, the 40 year history of volatile gas prices and also ignores the effect the current turmoil in Iraq. However, Buis points out, increased domestic fuel production of fuels such as ethanol and a decrease on dependence of foreign oil would help provide stability and reduce the price hikes in gas prices at the pump.

“Clearly, this report is agenda driven and ignores the facts. Wild and statically unrealistic conclusions such as these show just how flawed the majority of this report is, and why it should not be taken with any level of seriousness,” added Buis. “It seems to me that the CBO got only one thing right in this assessment, and that is with regards to the production of ethanol from corn and how it has virtually no impact on the price of food. Yet, again it is flawed as it fails to highlight that the true driver of food costs is the price of oil.

The National Farmers Union (NFU) was also unhappy with the report and said that CBO’s claim that repealing the RFS would reduce gasoline prices is “simply false”. “The RFS has reduced consumer demand for oil, and the study fails to take that into account. It is unfortunate that CBO, which is supposed to be objective, released such a flawed study that does not take into account the reality of fuel markets,” said NFU Senior Vice President of Programs Chandler Goule.

“Study after study show that the RFS is saving consumers money. E85prices.com recently released data showing that consumers filling up with E85 can save an average of $0.61 less per gallon,” Goule continued. “The RFS is a successful policy tool that decreases our nation’s reliance on foreign oil, creates economic opportunities in rural America, and effectively decreases the greenhouse gas footprint of the transportation sector. CBO should have taken all of these benefits to consumers into consideration when performing the study.”

biofuels, Ethanol, Growth Energy, Renewable Energy, RFS

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFCanadian Solar Inc. has announced that it has recently signed a sales contract to supply 12.6MW of photovoltaic modules to Kayseri Organized Industry Zone and a consortium of companies in KOIZ, (BESLER Tekstil San. ve Tic. A.S and HASCELIK Group of companies- Hascelik Cable, Coreal Cable and Metal Matris) for a solar power project located in Kayseri, Turkey.
  • Inteco Beteiligungs GmbH, an Austrian company owned by Russian businesswoman Yelena Baturina, has signed an agreement with the German company RE-Pro (RE-Pro Renewable Energy Provider KGaA) for the development of a project aimed to generate, use and market renewable energy in Europe. The overall investment amounts to €10 million, and according to the plans announced, in the course of the implementation of the project the amount may be doubled. The first major activity of the new joint venture is the construction and commercial operation of solar panels parks (PV-Parks or Solar Parks) in the South and South-Eastern Europe. The project’s latest acquisition is a solar park in Italy that has already been fully equipped and put into operation.
  • CHS Inc. has announced the retirement of a member of its leadership team and changes in responsibility for two others. John McEnroe, executive vice president, CHS Country Operations, will retire Dec. 31, 2014. Lynden Johnson, currently executive vice president, CHS Business Solutions, has been promoted to executive vice president, CHS Country Operations. Lisa Zell, currently executive vice president and general counsel, has been promoted to executive vice president, CHS Business Solutions. Both Johnson and Zell will continue in their current roles through the end of fiscal 2014 on Aug. 31, 2014, and assume their new positions on Sept. 1, 2014.
  • Geodynamics Limited, a leading Australian geothermal exploration and development company, and its joint venture partner Kentor Energy Pty Ltd, a subsidiary of KGL Resources Ltd, have received development consent relating to exploration activities for the proposed 20 MW Savo Island geothermal power project in Solomon Islands from the Solomon Islands Department of Environment.
Bioenergy Bytes

Agrisoma Recognized at BIO for Biodiesel Feedstock

John Davis

agrisomaA Canadian company has been recognized for its commercialization of its non-food biodiesel feedstock. This company news release says Agrisoma Biosciences Inc. picked up the Gold Leaf Award for biotech excellence in Canada at the recent 2014 BIO International Convention in San Diego for development of carinata, sold under the company brand name Resonance, whose oil can be made into biojet fuel and biodiesel.

Steven Fabijanski, President and CEO stated, “Agrisoma is honored to receive the Gold Leaf Award. It is a gratifying acknowledgement of the innovation we have accomplished in bringing to market Agrisoma’s next generation agricultural products which are providing a sustainable solution for renewable energy. We have commercialized Resonance® Carinata, Canada’s first non-food crop that produces oil uniquely suited for biofuel production. Resonance Carinata was used to fuel the world’s first 100% renewable biojet fuel flight here in Canada. This Gold Leaf Award recognizes those accomplishments.”

“Agrisoma’s innovation is a fantastic demonstration of how biotechnology helps to provide the solutions needed to address the pressing challenges facing our society and environment. The company has offered an opportunity for farmers to produce a dedicated energy crop using landconsidered marginal, without impacting food production,” commented Andrew Casey, Presidentand CEO of BIOTECanada. “The vision and dedication of Agrisoma offers inspiration and promise for the economy and society more broadly. Using the tools of biotechnology to rapidly enhance performance and enhance sustainability only adds to the importance of agriculture in meeting the social, environmental and economic challenges associated with rapid global population growth.”

Also, Agrisoma’s Resonance recently gained approval as a feed for cattle.

Biodiesel, feedstocks

New Fund in Biodiesel Booster Dallas Hanks’ Memory

John Davis

Dallas Hanks1A new fund has been set up in memory of biodiesel booster Dallas Hanks, who recently died from cancer. The National Biodiesel Foundation set up a new foundation in Dallas’ memory. For those who might not have known this great champion of the green fuel, this Utah State University professor and founder of USU’s Center for Agronomic and Woody Biofuels was described as a visionary who had a knack for bringing stakeholders together to pursue a bigger picture. The Next Generation of Scientists Dallas Hanks Memorial Fund will honor his legacy and pass the research reins to a new generation of scientists eager to chase his dream.

Dallas was a huge supporter and contributor to [the National Biodiesel Board’s] Next Generation Scientists program, where student scientists could be offered scholarships to attend industry events and other scientific mentoring activities. It was the consensus of the group [who gathered shortly after his death] that the National Biodiesel Foundation would create the Next Generation Scientists Dallas Hanks Memorial Fund. The proceeds of this fund will advance the original objectives of the program and assist in carrying out the visionary work that Dallas started. On behalf of the National Biodiesel Board and Foundation, the biodiesel industry, Dallas’s family and many friends, we encourage you to support this important fund in order to honor Dallas and further his legacy. Thank you.

Click here to contribute to the Next Generation of Scientists Dallas Hanks Memorial Fund.

Biodiesel, NBB

DF Cast: Finding Ways to Increase Ethanol Blends

John Davis

While the ethanol industry awaits the Environmental Protection Agency’s decision on the amount of ethanol to be blended into the nation’s fuel supply, ethanol producers are looking at other ways to make sure the green fuel increases its blend amounts.

In this edition of the Domestic Fuel Cast, we hear from Growth Energy CEO Tom Buis, Dean Drake with the consulting company the Defour Group, Scott Zaremba, president of Zarco Incorporated, and Ken Parrent, the ethanol director for the Indiana Corn Marketing Council, as they give their thoughts on how consumer demand will be a bigger driver for higher ethanol blends after attending an Indiana Corn Growers Association ethanol forum that focused on marketing mid-level ethanol blends and ran following the recent 2014 Fuel Ethanol Workshop in Indianapolis.

Domestic Fuel Cast - Increasing Ethanol Blends

You can also subscribe to the DomesticFuel Cast here.

Audio, Distillers Grains, Domestic Fuel Cast, E15, E85, EPA, Ethanol, Ethanol News, FEW, Government, Growth Energy, RFS

Lawmakers Ask Obama to Boost Biodiesel

John Davis

epa-logoAs the Environmental Protection Agency (EPA) is poised to release its decision on the amount of biodiesel and ethanol to be mixed into the nation’s fuel supply (and we’re hearing word now that decision might be delayed until the Fall), a bi-partisan group of lawmakers is making its appeal to the White House to allow biodiesel to keep growing. This news release from the National Biodiesel Board cites the letter from 52 lawmakers who are concerned about the EPA’s current proposal to reduce the amount of biodiesel to be required for obligated parties under the Renewable Fuel Standard (RFS)

“During your time in office you have supported the development and growth of the biodiesel industry. Now, biodiesel producers around the nation have the ability to generate nearly two billion gallons a year of the only EPA-approved advanced biofuel, which is commercially available across the United States,” the lawmakers wrote in a letter to President Obama. “Therefore, we believe now is not the time for a critical shift in biodiesel policy. We urgently ask that you raise biodiesel’s RVO for 2014 above 1.28 billion gallons.”

The letter, which was led by Reps. Collin Peterson, D-Minn., and Adam Kinzinger, R-Ill., can be found here. The lawmakers signing the letter represent 22 states.

In a draft RFS rule released in November, the EPA proposed holding biodiesel volumes at 1.28 billion gallons – a sharp drop from last year’s actual production of nearly 1.8 billion gallons. Biodiesel producers around the country have warned that such a proposal will cause severe contraction in the industry. A nationwide survey of producers conducted by the National Biodiesel Board (NBB) in April found that more than half have already idled a plant this year and 78 percent have reduced production from last year. Nearly two-thirds – 66 percent – have already laid off employees or anticipate doing so.

NBB officials have previously expressed their shock and disappointment on the proposal because of the success biodiesel has already shown in exceeding the targeted amounts of renewable fuels. They call on the Obama Administration “to finalize a strong RFS volume as quickly as possible.”

Biodiesel, EPA, Government, RFS